Crypto Market Liquidates $539 Million in a Day, Mostly Long Positions

The cryptocurrency market has faced significant turbulence over the past 24 hours, resulting in liquidations worth $539.1 million (₩784.1 billion). According to data from Coinglass as of 8:28 a.m. on January 8, approximately 169,958 traders were impacted, with 89% of the liquidated positions being long, amounting to $480.96 million. The remaining $58.15 million came from short positions.

Over a 12-hour period, liquidations totaled $489.07 million, with 92% originating from long positions. In the last four hours alone, $117.02 million was liquidated, of which 91% were longs. The most affected assets were altcoins, which accounted for $124.61 million, representing 23% of the total liquidations. Among these, long positions dominated with $118.82 million, making up 95% of the altcoin-related liquidations.

Ethereum experienced the second-largest liquidation volume, with $118.06 million wiped out, 89% of which were long positions. Bitcoin followed closely with $101.87 million in liquidations, primarily from long trades. Solana saw $24.3 million liquidated, also predominantly from long positions.

The largest single liquidation occurred on Binance, involving an ETHUSDT position worth $17.74 million (₩25.8 billion). Binance also led the exchanges in total liquidation volume, processing $248.11 million, or 46.03% of the total liquidations, with 90.52% being long positions. OKX followed with $116.31 million, of which 84.31% were longs, while Bybit processed $108.38 million, 89.09% of which were long positions.

Liquidations occur when traders' positions are forcibly closed due to insufficient margin to cover losses from adverse price movements. This phenomenon is particularly common in high-leverage trading environments, where even minor price fluctuations can lead to significant losses.

The volatility has extended to the broader market, with Bitcoin trading at $96,858, down 5.16%, and Ethereum falling 8.15% to $3,377.00, according to CoinMarketCap. The sharp declines reflect a period of heightened uncertainty in the cryptocurrency sector, where leverage trading amplifies both risks and losses.

As the market adjusts to these conditions, traders are urged to exercise caution and adopt robust risk management strategies to navigate the current volatility effectively.